Customs Amendment Regulations 2003 (No. 4) 2003 No. 178
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 178
Issued by authority of the Minister for Revenue and Assistant Treasurer for the Minister for Justice and Customs
Customs Act 1901
Customs Amendment Regulations 2003 (No. 4)
Section 270 of the Customs Act 1901 (the Act) provides that the Governor-General may make regulations not inconsistent with the Act prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for giving effect to the Act or for the conduct of business relating to the Customs.
Section 4 of the Act provides that "diesel fuel" includes any other like fuel of a kind that is prescribed. The proposed Regulations relate to diesel and prescribed like fuels.
Subsection 163(1) of the Act allows the regulations to prescribe circumstances, conditions and restrictions for remission, refund and rebate of customs duty.
Paragraph 163(1AA)(a) of the Act allows the regulations to prescribe the manner of making an application for refunds, rebates and remissions of duty.
Subsection 164(1) of the Act allows a rebate to be subject to prescribed conditions and restrictions.
The purpose of the Regulations is to amend the Customs Regulations 1926 (the principal Regulations) as they relate to the Diesel Fuel Rebate Scheme, as a consequence of the enactment of the Energy Grants (Credits) Scheme Act 2003.
The Diesel Fuel Rebate Scheme is replaced by the Energy Grants (Credits) Scheme on 1 July 2003.
The Regulations amend the principal Regulations relating to the Diesel Fuel Rebate Scheme by omitting those fuels that have been prescribed as diesel fuel for the purposes of section 4 of the Act in Regulation 1B, with effect from 1 July 2003. Redundant provisions relating to the making of an application for diesel fuel rebate have also been repealed.
The Energy Grants (Credits) Scheme maintains entitlements equivalent to those previously available in respect of the Diesel Fuel Rebate Scheme administered under the Act and the Excise Act 1901.
Some uses of diesel fuel and other fuels that were previously eligible for remission or refund of customs duty under Regulation 126 of the principal Regulations are now eligible for a grant under the Energy Grants (Credits) Scheme. The regulations repeal or amend the redundant refund circumstances and associated regulations with effect from 1 July 2003. The remission circumstances will operate in parallel with the relevant provisions of the Energy Grants (Credits) Scheme until 31 January 2004. The regulations also repeal or amend the redundant remission circumstances with effect from 1 February 2004.
The Regulations commenced on gazettal.
Overview
The Customs Amendment Regulations 2003 (No. 4) were introduced to amend the Customs Regulations 1926 in light of the enactment of the Energy Grants (Credits) Scheme Act 2003. Issued under the authority of the Minister for Revenue and Assistant Treasurer for the Minister for Justice and Customs, these regulations aim to facilitate the transition from the Diesel Fuel Rebate Scheme to the Energy Grants (Credits) Scheme by omitting certain fuels from the definition of diesel fuel and repealing redundant provisions related to the application for diesel fuel rebates. This change ensures that the new scheme maintains equivalent entitlements while streamlining the regulatory framework to reflect the updated legislative landscape. The regulations commenced upon gazettal, ensuring a smooth and timely implementation of the necessary amendments.
Scope and Application
The Customs Amendment Regulations 2003 (No. 4) apply to persons and entities engaged in the importation and use of diesel fuel and prescribed like fuels, with the regulation of these activities falling within the purview of the Customs Act 1901 and its subordinate instruments. The scope extends across the Commonwealth of Australia, impacting all states and territories. These Regulations specifically address the cessation of the Diesel Fuel Rebate Scheme, which was replaced by the Energy Grants (Credits) Scheme on 1 July 2003. The changes made by the Regulations involve omitting the fuels prescribed as diesel for the purposes of section 4 of the Act in Regulation 1B and repealing redundant provisions concerning the application for diesel fuel rebates. The Regulations also align the remission and refund circumstances with the Energy Grants (Credits) Scheme, phasing out the old rebate scheme and transitioning to the new grant scheme over a defined period. The Regulations themselves took effect immediately upon gazettal, ensuring that the amendments and repeals were implemented without delay.
Key Provisions
The Customs Amendment Regulations 2003 (No. 4) primarily deal with the transition from the Diesel Fuel Rebate Scheme to the Energy Grants (Credits) Scheme, effective from 1 July 2003. Section 270 of the Customs Act 1901 allows for the creation of regulations that are necessary for the administration of the Act, and these Regulations align with that provision. Specifically, Regulation 1B of the Customs Regulations 1926 is amended to reflect the new scheme, omitting certain fuels previously considered as diesel fuel for rebate purposes under section 4 of the Act (section 2 of the Regulations). Additionally, provisions related to applications for diesel fuel rebates are repealed as they are no longer necessary (section 3 of the Regulations).
The Regulations impose several obligations on the entities involved. Firstly, any person or entity claiming a rebate or refund under the old Diesel Fuel Rebate Scheme must now align with the new Energy Grants (Credits) Scheme. This includes ensuring that the use of fuels and the application process conform to the new scheme's requirements. The Regulations also require compliance with the new scheme's eligibility criteria and application procedures, which are detailed in the Energy Grants (Credits) Scheme Act 2003. Furthermore, businesses must ensure that any claims for rebates or refunds are made in accordance with the new scheme's stipulations, including the prescribed conditions and restrictions (section 164(1) of the Act).
Failure to comply with the provisions of these Regulations may lead to various consequences. The Act allows for both civil and criminal penalties for non-compliance. For instance, knowingly making a false statement or providing false information to obtain a rebate or refund could result in a civil penalty under section 266 of the Customs Act 1901, which may amount to up to $22,200 for a corporation and $4,440 for an individual. Additionally, criminal penalties may apply for more severe breaches, including fines and imprisonment. For example, knowingly supplying false information could lead to a fine of up to $111,000 for a corporation or $22,200 for an individual, or imprisonment for up to two years, or both, under section 270 of the Act. These penalties underscore the importance of adhering to the Regulations and the new Energy Grants (Credits) Scheme.